LSE-listed Kavango Resources has confirmed an openpit gold deposit at the Nightshift prospect within its Hillside gold project, in Zimbabwe, following a maiden Joint Ore Reserves Committee- (Jorc-) compliant mineral resource estimation (MRE) that exceeded expectations.

The company said on October 20 that the MRE supports its strategy to expand gold production using modern mechanised mining and processing methods.

The Nightshift deposit is expected to deliver high ore tonnes and gold ounces per vertical metre, which Kavango considers key to maximising the site’s potential.

Kavango is now considering the construction of an upgraded 300 t/d gold processing plant at the Bill’s Luck gold mine, located about 800 m east of Nightshift. This would represent a 50% increase from the previously planned 200 t/d facility.

The new resource underpins the company’s planned near-term gold production at Hillside.

According to the MRE, the Nightshift deposit contains a total resource of 20 000 oz of gold at an average grade of 0.86 g/t. Of this, 11 000 oz are classified as indicated at 0.78 g/t, and 9 000 oz as inferred at 0.98 g/t.

Kavango said the deposit covers at least 700 m of strike length and about 200 m in width, with potential for both openpit and underground mining. The system remains open at depth, and much of its strike extent has not yet been tested by drilling.

The company’s technical team identified the potential for openpit gold mining at Nightshift in 2024 following mapping and exploration drilling. The first three exploration holes intersected gold-hosting structures more than 200 m below surface.

In the first quarter of this year, Kavango completed preliminary resource drilling on a 100-m by 125-m grid, testing about 15% of the known strike length. The objective was to identify enough ore to support a minimum three-year life-of-mine during the first phase of production. The results indicate that Nightshift contains sufficient mineralisation to support the company’s initial production plans.

The company said its technical team is now analysing the MRE with a view to starting shallow selective openpit mining in the first half of 2026. Close-spaced grade control drilling will be conducted before mining begins. Further exploration drilling along strike and at depth is also being planned to test the underground potential of the deposit.

In addition, a resource definition drilling programme is under way at Bill’s Luck, where an initial MRE is expected before the end of the year to help guide and derisk the company’s 2026 mining plan.

“This maiden Jorc resource at Nightshift is a defining moment for Kavango. It proves that our gold development strategy in Zimbabwe is working and that our decision to focus on near-surface, fast-track production targets is delivering results,” Kavango CEO Ben Turney said.

He noted the company’s initial exploration work at the Hillside gold project in mid-2023 aimed to identify deposits that could be brought into production quickly using modern mining and processing methods, noting that the maiden resource represented only the first stage of what Kavango expects will become a larger resource base as exploration continues.

“In just over two years, we have advanced from initial discovery to defining a compliant openpit resource capable of supporting near-term gold production. This highlights the potential that Zimbabwe’s gold fields offer Kavango,” Turney said.

He added that the first round of drilling covered only about 15% of the known 700 m strike length and reached depths of just 50 m, as the focus was on defining a starter resource to support early cash flow. The stronger-than-expected results at this early stage, he said, gave the company confidence in the broader potential of Nightshift.

Turney also noted that gold-bearing structures had been encountered more than 200 m below surface during exploration, indicating promising underground mining opportunities.

As a result of these findings, Turney said the company was assessing a possible increase in its production capacity at Hillside from 200 t/d to 300 t/d to reflect the greater resource potential already demonstrated.

“In addition, our exploration team will extend trenching at Nightshift to test expansion of the known strike from 700 m to up to 1 400 m. At the same time, we are preparing a diamond drill programme to test the underground potential, where structural work completed by our team and external consultants seems to indicate continuity of the gold-bearing structures at depth, with gold grades increasing,” he explained.

Turney said that these next steps at Nightshift formed part of Kavango’s broader Hillside development strategy, with further resource drilling under way at Bill’s Luck and a second Jorc resource for the project expected later this year.

“With gold prices strong and momentum building across our portfolio, this marks an exciting next step for Kavango. We have demonstrated that our strategy is working, and our focus now is on unlocking the full potential of our gold development projects,” he said.